PM CARES Fund

Subject: Polity

Section: Constitution

Context: PM CARES Fund cannot contract out of the Constitution, Delhi HC

Background:

In 2021, the Delhi High Court was informed that the PM CARES Fund is not a Government of India fund and that the amount collected by it does not go to the Consolidated Fund of India.
Petition was filed seeking the PM-CARES fund to be declared as the “State” under Article 12 of the Constitution.
Now Delhi HC says, ‘Cosy arrangements’ cannot be allowed under the law and the PM CARES Fund must either submit to the rigours of the Constitution or not publicise itself as “State”

About PM CARES Fund

Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund) was created on 27 March 2020, following the COVID pandemic.
The stated purpose of the fund is for combating, and containment and relief efforts against the coronavirus outbreak and similar pandemic like situations in the future.
Prime Minister is the ex-officio Chairman of the PM CARES Fund and Minister of Defence, Minister of Home Affairs and Minister of Finance, Government of India are ex-officio Trustees of the Fund.
The fund receives voluntary contributions from individuals and organisations and does not get any budgetary support.
Donations have been made tax exempt, and can be counted against a company’s corporate social responsibility (CSR)
It is also exempt from the Foreign Contribution (Regulation) Act, 2010, and accepts foreign contributions, although the Centre has previously refused foreign aid to deal with disasters such as the Kerala floods.
PM-CARES Fund not subject to CAG audit
PM CARES Fund’s trust deed is not available for public scrutiny.